"In reality many have problems because they want an index. If there's no index, the first thing they do is try to load the whole thing to build an index."
They might want an index (because of faster seeking), but do not require it. For example, playing an index-less MKV in MPC-HC will result in no index being created until you seek. Considering that during live streaming you don't seek it makes this a complete non-issue (and makes MPC-HC perfectly ready for watching live-streamed Matroska content). The reason why for example MPC-HC creates an index upon seeking is simply because its main purpose is to act as a local media file player. If you were dealing with a streaming client, you could do things differently. Bottom line is that index in Matroska is completely optional and thus if you want to support Matroska you need to support index-less Matroska files too.
"Setting up an Ogg stream"
Setting up a MKV stream is quite simple with VLC too. Same goes for setting up an OGG stream with it. OGG might have more support within certain streaming solutions because of the amount of OGG Vorbis audio streams, but how many of these support streaming Theora video in OGG as well?
"What can Matroska do that Ogg can't?"
Are you seriously asking this? From the top of my head:
These are things that basically all proper software Matroska players support. Some features have varying degree of support (like advanced chapter magic) in software, but free and open solutions are available for all platforms. In terms of hardware support, advanced chapter magic tends to be mostly unsupported (though usually resulting simply in things like external segments not playing while the rest of the file plays fine), second being ASS. Some players, like the Popcorn Hour, offer limited ASS support though. No hardware player supports it fully though.
These are all formats that people actually use on the internet and for their personal media files. Besides supporting these, Matroska also has what probably equates to the best toolkit for working with a container format ever, mkvtoolnix. And it's free and open source too!
"Is there any benefit to adding Matroska"
Yeah. Supporting files people actually make and use, instead of forcing them to convert their files just to be web-compatible and nothing else. That nothing else part is pretty notable, because outside live streaming OGG doesn't really have anything to offer over Matroska for users. For example, among people who make digital copies of their DVDs/BDs/video content (aka doom9 users), only two preferred OGG as the container to use in 2008's "favorite video container" poll. In last year's poll, that number dropped to zero while Matroska's support percentage grew even larger. I think this alone shows pretty clearly that outside web usage, Matroska is the number one container of choice.
because their big push is mobile. Implementing a larger, more complex, duplicate system is unlikely to interesting unless there's some killer feature Ogg is missing.
Well, considering that there are PMPs out there that play Matroska files among other things, I doubt being mobile would be a problem. And since Matroska can do everything OGG can and then some, there'd be no real need for browser vendors to write support for OGG at all.
Also, I have a question: Is HTML5 video with Theora in OGG used anywhere for live streaming? I know that Vorbis in OGG is used a lot for audio streaming and I have absolutely nothing against that, hell I've listened to plenty of OGG live audio streams as well. However, I did none of that in my browser, I always used my audio player for that. Foobar2000, to be specific. Now, if someone were to start a Matroska audio stream in VLC and stream it over the internet, foobar2000 would play that equally well, since it's one of the few audio players to support Matroska.
But when it comes to live video streams, I honestly don't see much of it in general. So far I have never watched a live Theora&Vorbis in OGG stream. I've watched some FLV livestreams in VLC. I've also watched some livestreams in my browser using Flash. If you know of any site that would do live streaming using Theora, OGG and HTML5 please let me know. So far I've only seen HTML5 video used for the usual progressive download type videos.
Also, I have to say that in discussions like this, I'd wish that you people refrain from using comments like "OGG is better for streaming than Matroska", because it's very misleading. While technically speaking it might have some merit to it, it becomes false advertising when your average user confuses it to YouTube-like progressive downloading that is nowadays dubbed "streaming", where OGG provides absolutely no benefit over Matroska.
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